ON Semiconductor Corporation, based in Scottsdale, Arizona 
above provides intelligent sensing and power solutions that supply analog, standard logic, and discrete semiconductors. The company, valued at $26.7 billion in market capitalization, offers products such as integrated circuits and analog ICs, as well as a variety of surface-mount and standard packages. Major semiconductor manufacturers are scheduled to announce their financial results for the fourth quarter of fiscal year 2024 on Monday, February 3rd.
Ahead of the event, analysts expected ON to report earnings of $0.99 per share on a diluted basis, down 20.8% from $1.25 per share in the year-ago period. The company has consistently exceeded Wall Street’s EPS estimates over its past four quarterly reports.
Analysts expect ON’s full-year EPS to be $4, down 22.5% from $5.16 in fiscal 2023. However, 2025 EPS is expected to increase 9.5% year over year to $4.38.
ON stock has significantly underperformed the S&P 500 Index ($SPX)’s 24.2% gain over the past 52 weeks, with the stock price down 25.2% over that period. Similarly, it significantly underperformed the Technology Select Sector SPDR Fund’s (XLK) gain of 23.9% over the same period.
ON’s poor performance can be attributed to last year’s poor performance as weak key end markets and high interest rates affected vehicle sales and production. Additionally, the slowdown in the EV market affected the company, and management lowered estimates for silicon carbide chips.
On October 28, ON stock closed up more than 1% after the third quarter results were announced. Adjusted EPS was $0.99, beating Wall Street expectations of $0.97. The company’s revenue was $1.76 billion, beating Wall Street expectations of $1.75 billion. ON expects fourth-quarter adjusted EPS in the range of $0.92 to $1.04 and revenue of $1.7 billion to $1.8 billion.
Analyst consensus on ON stock is moderately bullish, with an overall rating of Moderate Buy. Of the 31 analysts covering the stock, 17 recommend a “strong buy” rating, one suggests a “moderate buy,” 11 recommends a “hold,” and one recommends a “moderate sell.” ”, with one person recommending a “strong sell.” ON’s average analyst price target is $86.35, implying a potential upside of 48.1% from current levels.
On the date of publication, Neha Panjwani did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
More News from Barchart Why This Troubled Dividend Aristocrat Stock Looks Like a Crying Buy One prominent investor thinks NVIDIA stock is set to soar over the next five years. Should you buy NVDA now? Up over 80% in 2024, is SOFI stock overvalued? Cathie Wood bought this undervalued AI stock for $10 million. Should I do that?
